Three firms including Allied Blenders and Distillers SEBI's approval to float IPO

Three companies -- Allied Blenders and Distillers Ltd, the maker of Officer's Choice Whisky, automotive component firm Divgi Torqtransfer Systems and maker LED lighting solutions IKIO Lighting -- have secured Sebi's go-ahead to float IPO.

The three companies filed their preliminary IPO (initial public offering) papers with the regulator between September and October, received the regulator's observation letters during October 13-16, an update with the Securities and Exchange Board of India (Sebi) showed.

In Sebi's parlance, obtaining its observation letter implies its go ahead to launch the IPO.

The equity shares of these companies are proposed to be listed on the stock exchanges -- BSE and NSE.

Going by the draft papers, Allied Blenders and Distillers' IPO comprises fresh issue of equity shares worth Rs 1,000 crore and an Offer For Sale (OFS) to the tune of Rs 1,000 crore by promoter and promoter group entity.

As a part of the OFS, Bina Kishore Chhabria will offload shares worth up to Rs 500 crore, while Resham Chhabria Jeetendra Hemdev and Neesha Kishore Chhabria will sell shares to the tune of up to Rs 250 crore each.

Proceeds from the fresh issue will be used for payment of debt and for general corporate purpose.

As of March 31, the company's product portfolio comprises 10 brands of Indian-Made Foreign Liquor (IMFL) across whisky, brandy, rum and vodka. Some of the major brands of the company include Officer's Choice Whisky, Sterling Reserve Whisky, Jolly Roger Rum and Class 21 Vodka.

The IPO of Divgi Torqtransfer Systems consists of fresh issue of equity shares aggregating up to Rs 200 crore and an OFS of up to 31,46,802 equity shares by investors and other selling shareholders, according to the Draft Red Herring Prospectus (DRHP).

As part of the OFS, Oman India Joint Investment Fund II, Nrjn Family Trust, Bharat Bhachandra Divgi, Sanjay Bhalchandra Divgi, Ashish Anant Divgi, Arun Ramdas Idgunji and Kishore Mangesh Kalbag will offload shares.

Proceeds from the fresh issue will be used towards funding capital expenditure requirements for the purchase of equipment for its manufacturing facilities and general corporate purposes.

Divgi is an automotive component entity which has the capability to develop and provide system level transfer case, torque coupler, and Dual Clutch Automatic Transmission (DCT) solutions. It has three manufacturing and assembling facilities located across India.

IKIO Lighting's IPO consists of a fresh issue of equity shares worth up to Rs 350 crore and an OFS of up to 75 lakh equity shares by promoters -- Hardeep Singh and Surmeet Kaur.

Proceeds from the fresh issuance worth Rs 50 crore will be used for debt payment, Rs 236.68 crore will be used in the company's wholly-owned subsidiary, IKIO Solutions, to set up a new facility at Noida, Uttar Pradesh, and for general corporate purposes. IKIO Lighting is a manufacturer of light emitting diode (LED) lighting solutions.

On the other hand, Sebi has returned the draft papers of Motisons Jewellers Ltd on December 16. The company had filed draft papers with Sebi in October.